Avast acquires antivirus maker AVG - Is this good for Avast!?

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Captain Awesome

Level 21
Verified
Malware Tester
As many of you know, there are two security companies that often get confused: Avast and AVG. Shortly after I started as CEO almost 8 years ago, I remember giving a presentation to a large audience about Avast. About an hour later, a gentleman walked up to me and complimented me on how good the presentation was and how he enjoyed hearing about AVG. That was my first lesson in how easy the companies are to confuse.

This confusion is because the companies are so very similar. Both company names start with the letters “AV”. Both started in the late 1980s and were amongst the first few companies formed to fight the viruses and malware nearly 30 years ago. Both are historically Czech: Avast was founded in Prague and is still based there while AVG was historically in Brno, the two largest cities in the Czech Republic. Both pioneered the free distribution of top quality security products (although to be honest, I must admit that AVG was first and we followed). Both make great security products. Both are innovators with world class R&D teams. Both have most of their users outside of their home Czech market. Both have had similar user bases for many years: about 200M each. And most importantly, both treat their users with respect and consequently each has a large and loyal user base. One slight difference though is that while Avast is a private company, AVG is public and listed on the New York Stock Exchange.


In spite of this one difference, these companies are so similar that it is only natural that they be combined and that is what we are now planning on doing. Under an agreement signed with AVG, Avast will be making an offer ($25 per share or about $1.3 billion in total) to buy all shares of AVG’s stock which AVG’s board is recommending their shareholders accept. If the AVG shareholders do accept, following the various governmental regulators approvals, AVG will become part of Avast and we will jointly work on a great future together. We expect this to take a few months. Now this process is much more complex than this simple description and there are a lot of rules and regulations about the process and what we can say, etc. As a result, at the bottom of this blog entry you will find a page of important disclosures that you should read if you are a shareholder, contemplating being a shareholder, or are just curious.

A $1.3 Billion deal to buy AVG.Avast to Buy AVG for $1.3 Billion to Add Security Software



Read More:
Avast and AVG: A Future Together
 
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0136d0n

Level 1
Avast, which is known for its consumer-grade antivirus software with over 230 million users worldwide, has announced that it will acquire rival AVG for $1.3 billion in an all-cash deal.

Both firms have their roots in the Czech Republic. The transaction will allow Avast to expand its business across more markets worldwide; together, the two companies have a user base of about 400 million, including about 16 million people who use their mobile security products.

Avast also hopes that its new acquisition will allow to create better security services for sectors like small and medium businesses and IoT hardware. It isn’t yet clear if Avast will fold AVG’s software offerings into its own brand or continue to sell them under the existing banner.
Read more:
- Antivirus giant Avast is acquiring rival AVG for $1.3b
- Avast Announces Agreement to Acquire AVG for $1.3B
- Avast and AVG: A Future Together
 
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D

Deleted member 178

Security giant Avast has announced it intends to acquire fellow Czech-based antivirus software maker AVG for a purchase price of $25.00 per share in cash — resulting in a transaction that will total around $1.3 billion.

Avast intends to finance the transaction using cash balances it holds, along with committed debt financing from third party lenders.

The deal is aimed at gaining scale and geographical breadth, Avast said today. It also wants to build out its security offerings with an eye on emerging growth opportunities such as in the Internet of Things, as well as on serve existing customers with “more advanced” products.
Game changing...or not :D
 

jamescv7

Level 61
Verified
Trusted
So AVG will have numerous features like Avast does for free version? Not impossible, considering that it will increase more revenues hence the result goes to provide additional improvements on the product.

The thing defeats here is the competition but hopefully not all security companies will follow on this lead, as the purpose may goes only much in money than service.